What is rent-to-own?
Rent-to-own is an agreement in which a consumer agrees to make periodic payments, often weekly or monthly, in exchange for tangible property like furniture, electronics or appliances. The customer can rent the property for as long as he wants. The rental-purchase transaction grants ownership rights once the merchandise is rented for the specified number of periodic payments or a prepayment is made. This arrangement cuts down on the financial risk of acquiring expensive items, which might otherwise have seemed out of reach. The rent-to-own industry exploded in the 1970s, probably as a response to the proliferation of credit sales that spread throughout the 1960’s. At last, consumers became able to acquire durable goods for their homes without long-term financial obligations. Today, most rent-to-own shops compete with modern retailers by offering variety and accessibility to trusted brands. There’s never been a better time to become part of the rent-to-own movement. We’re an 8.5 billion dollar industry, and we’re growing every year. It’s a safe bet the rental industry is here to stay.
The many benefits of rent-to-own.
The benefits of renting instead of buying are numerous. A popular feature of a rent-to-own arrangement is that it lets the customer try out durable goods before the actual purchase. This comes in handy when it’s a costly item like furniture or electronics. Renting expensive items, like a flat screen television or a new living room suite, lets the customer decide if he likes a product before he chooses to buy it. Renting provides an irresistible safety net for a customer’s expensive purchases, which can often be intimidating.
And if a renter decides the fit isn’t right, he can return the goods without penalty. How many times have you made an expensive purchase, like a new recliner or dining room table, and changed your mind about it as soon as you got it home? With rentals, you can return the items for whatever reason, no questions asked. This benefit of the rent-to-own arrangement is perfect when it comes to technology-based goods. Just think of how many times emerging technology has rendered your own computer or smartphone out of date. With a rental, it’s easy to stay on top of trends in technology. When a new phone or computer model comes out, just return your old one. There’s no long-term obligation when you rent-to-own.
How does a rent-to-own transaction work?
When it comes down to it, it’s the transaction structure that creates the most value for rent-to-own customers, including flexible payment terms. For a few dollars either weekly or monthly, rent-to-own customers get to enjoy items they otherwise might not be able to purchase. With a rental, no debt is incurred. In fact, credit is never an issue when it comes to renting; there’s no credit check since no credit is actually extended. That means rent-to-own purchases won’t ever affect your credit rating. And renters don’t have to worry about costly service bills when it comes to their purchases. Service is included in most rent-to-own transactions, often including loaners until the broken item is fixed. Throw in free delivery and set-up for most rented items and you’ve got an irresistible arrangement.
Get started as a rent-to-own customer today.
It all adds up to a safe, cost-effective way to shop for the goods you need. Visit your Rent 1st store today and we’ll be happy to walk you through the process. In fact, you’ll be so happy with your deal you may never want to shop any other way again.